The bill amends the "Tax Preparers Act" by updating its title and introducing new definitions and responsibilities for tax return preparers. Key changes include the definition of a "ghost preparer," who is a tax return preparer that does not self-identify on the returns they prepare or does not comply with the Preparer Tax Identification Number (PTIN) requirements, and the requirement for all tax return preparers to include their PTIN on all returns filed with the tax administrator. The bill emphasizes that tax return preparers must not engage in activities that facilitate ghost preparation and outlines their duties to comply with state laws and regulations.

Additionally, the bill establishes civil penalties for tax return preparers who willfully mislead clients, commit fraud against taxpayers, or violate any provisions related to their responsibilities. The penalties include a fine of up to $1,000 for each return filed in violation of these provisions. Furthermore, if a tax return preparer commits a violation after their privileges have been suspended or revoked, they may face penalties of up to $5,000 if suspended or $10,000 if revoked, per violation. The tax administrator is granted the authority to prepare and publish a list of tax return preparers whose privileges have been suspended or revoked. The act will take effect upon passage.